WEF Reports More Pakistanis Sharing Fruits of Economic Growth

More and more Pakistanis are sharing in their nation's development, according to World Economic Forum (WEF). Pakistan ranks 47 among 74 emerging economies ranked for inclusive development by WEF released recently at Davos, Switzerland. Inclusive development in the South Asian country has increased 7.56% over the last 5 years. World Economic Forum assesses inclusive development  based on "living standards, environmental sustainability and protection of future generations from further indebtedness."

WEF Inclusive Development Report 2018:

The WEF inclusive development index ranks Pakistan at 47, below Bangladesh at 34 but above India at 62. The 7.56% rate of increase in inclusive development in Pakistan is higher than 4.55% in Bangladesh and 2.29% in India. China ranks 26 and its inclusion is rising at a rate 2.94%.

WEF IDI Rankings. Source: WEF

Pakistan has improved its ranking from 52 last year to 47 this year, while India's rank worsened to 62 this year from 60 last year.  China's ranking also worsened from 15 last year to 26 this year.

Another WEF report compiled by Oxfam said the richest 1% of Indians took 73% of the wealth generated last year.

Income Share Change in Asia's Poorest Quintile: 

The share of national income of Pakistan's poorest 20% of households has increased from 8.1% to 9.6% since 1990 , according to the United Nations Economic and Social Commission for Asia and Pacific (NESCAP) Statistical Yearbook for 2015.  It's the highest share of income for the bottom income quintile in the region.

The countries where people in the poorest income quintile have increased their share of total income include Kyrgyzstan (from 2.5 per cent to 7.7), the Russian Federation (4.4 per cent to 6.5), Kazakhstan (7.5 per cent to 9.5) and Pakistan (8.1 per cent to 9.6).  India's bottom income quintile has seen its share of income drop from 9% to 7.8%.

Bottom Quintile Income Share Change. Source: UNESCAP Statistical Yearbook

Although more people in China have lifted themselves out of poverty than any other country in the world, the poorest quintile in that country now accounts for a lower percentage of total income (4.7 per cent) than in the early 1990s (8.0 per cent). The same unfortunate trend is observed for a number of other countries, including in Indonesia (from 9.4 per cent to 7.6) and in the Lao People’s Democratic Republic (from 9.3 per cent to 7.6).

CPEC Transforming Least Developed Regions:

Development of China Pakistan Economic Corridor (CPEC) is transforming Pakistan.  Among the parts of the contry being transformed the most by CPEC are some of the least developed regions in Balochistan and Sindh, specifically Gwadar and Thar Desert. Here is more on these regions:

Gwadar Port City:

Gwadar is booming. It's being called the next Shenzhen by some and the next Hong Kong by others as an emerging new port city in the region to rival Dubai. Land prices in Gwadar are skyrocketing, according to media reports. Gwadar Airport air traffic growth of 73% was the fastest of all airports in Pakistan where overall air traffic grew by 23% last year, according to Anna Aero publication.  A new international airport is now being built in Gwadar to handle soaring passenger and cargo traffic.




In addition to building a major seaport that will eventually handle 300-400 million tons of cargo in a year, China has built a school, sent doctors and pledged about $500 million in grants for an airport, hospital, college and badly-needed water supply infrastructure for Gwadar, according to Reuters.

The Chinese grants include $230 million for a new international airport in Gwadar, one of the largest such disbursements China has made abroad, according to researchers and Pakistani officials.

New development work in Gwadar is expected to create as many as 20,000 jobs for the local population.

Thar Desert:

Thar, one of the least developed regions of Pakistan, is seeing unprecedented development activity in energy and infrastructure projects.  New roads, airports and buildings are being built along with coal mines and power plants as part of China-Pakistan Economic Corridor (CPEC). There are construction workers and machinery visible everywhere in the desert. Among the key beneficiaries of this boom are Thari Hindu women who are being employed by Sindh Engro Coal Mining Company (SECMC) as part of the plan to employ locals. Highlighted in recent news reports are two Hindu women in particular: Kiran Sadhwani, an engineer and Gulaban, a truck driver.

Kiran Sadhwani, a Thari Hindu Woman Engineer. Source: Express Tribune

Thar Population:

The region has a population of 1.6 million. Most of the residents are cattle herders. Majority of them are Hindus.  The area is home to 7 million cows, goats, sheep and camel. It provides more than half of the milk, meat and leather requirement of the province. Many residents live in poverty. They are vulnerable to recurring droughts.  About a quarter of them live where the coal mines are being developed, according to a report in The Wire.

Hindu Woman Truck Driver in Thar, Pakistan. Source: Reuters

Some of them are now being employed in development projects.  A recent report talked of an underground coal gasification pilot project near the town of Islamkot where "workers sourced from local communities rested their heads after long-hour shifts".

Summary:

More and more Pakistanis are sharing the fruits of development in Pakistan as shown by the World Economic Forum report on inclusive growth. WEF ranks Pakistan at 47, below Bangladesh at 34 but above India at 62. The 7.56% rate of increase in inclusive development in Pakistan is higher than 4.55% in Bangladesh and 2.29% in India.   The share of national income of Pakistan's poorest 20% of households has increased from 8.1% to 9.6% since 1990 , according to the United Nations Economic and Social Commission for Asia and Pacific (NESCAP) Statistical Yearbook for 2015.  It's the highest share of income for the bottom income quintile in the region.  Development of China Pakistan Economic Corridor (CPEC) is transforming Pakistan.  Among the parts of the country being transformed the most by CPEC are some of the least developed regions in Balochistan and Sindh, specifically Gwadar and Thar Desert. 


Comments

Riaz Haq said…
#India's #GDP "Growth (under #Modi) has dipped below the 30-year average" Economist Kaushik Basu. #ModiAtDavos

http://www.thehindu.com/opinion/interview/growth-has-dipped-below-the-30-year-average-kaushik-basu/article22500231.ece

The former Chief Economic Adviser on India’s current slowdown in economic growth and the mix of policies needed to reignite it
In a career spanning more than four decades, economist Kaushik Basu has donned many hats. He was Chief Economic Adviser to the Government of India (2009-2012) and Chief Economist of the World Bank (2012-2016). At present, he is Professor of Economics and the C. Marks Professor of International Studies at Cornell University, U.S. He is also President of the International Economic Association for a three-year term (2017-2020). A prolific author, Mr. Basu explains why demonetisation was a bad idea and the need for the Goods and Services Tax (GST).

You have been a vocal critic of demonetisation and its intended purpose. Do you think its immediate effects are behind us? And, conversely, if there are increased digital transactions and tax scrutiny, as claimed, will that eventually lead to more growth?
I believe that demonetisation’s worst effects on the economy are behind us now. I do not think it will confer any long-run benefits in terms of digitalisation because that is a slow, natural process. There is no way that an emerging economy like India, with more than half the population still living in the informal sector, can leapfrog advanced economies and get there by a simple policy intervention. The main damage of demonetisation is to India’s reputation as a professionally run economy, since it was an uncalled-for jolt to the market.

You have been a consistent supporter of the other major reform, the GST. Is the current multi-tiered GST design optimal, considering that much of the voiced distress comes from small businesses? The textile sector, for example.
The GST was needed and I am glad that the government managed the political process to get it through. But it has been poorly implemented. For such a large policy shift, the planning and implementation design should have been much better. Also, it should not be too multi-tiered, which is both inconvenient and makes one wonder if this is a sign of sector-specific cronyism. Once we go past these teething troubles, the GST should aid efficiency and growth.

Has the Narendra Modi government leveraged the historic mandate it received, in terms of economic policy? Is there scope for further reform, which could possibly be seen in the Union Budget to be presented soon?
The broad policy continuity that we have seen in India — the GST, the effort to manage fiscal policy in ways similar to what happened before 2014 — is India’s strength. Yes, as always, a lot depends on the Budget, and we are all waiting to see what new initiatives are announced. But in fairness to the Ministry of Finance, India’s challenge is not a matter of fiscal policy alone. India’s economy is doing poorly on several fronts. Consider exports — they have dragged, with India’s trade deficit with China growing rapidly. Exports did seem to grow well from April to November last year, with an annual growth of 12.3%. But it was a time when several emerging economies did well and India’s performance fell short of many other nations, like Indonesia and Vietnam whose exports grew by 16% and 24%, respectively. I believe that India’s long-term prospects are very good, but to get out of the current morass, it needs a professionally designed combination of fiscal, monetary and international trade policy initiatives.
Riaz Haq said…
Pakistan’s Quest for Inclusive Growth
Feb 18, 2019 VAQAR AHMED

https://www.project-syndicate.org/commentary/pakistan-government-sustainable-inclusive-growth-plan-by-vaqar-ahmed-2019-02

Pakistan’s new government is understandably preoccupied with short-term economic problems, but it must also lay the foundations for a more inclusive long-term growth model. If it succeeds, the Pakistani economy might finally start to meet the rising aspirations of the country's young population.

For starters, the authorities need to attract the best people to work for the public sector. At present, Pakistan’s civil servants lack the strategic guidance and motivation to implement economic revival plans. Performance-based incentives are weak, and multiple layers of accountability add to the institutional sclerosis.

Pakistan also needs a bold vision for growth to replace the current incoherent mix of five-year federal development plans and provincial growth strategies. The Center for International Private Enterprise has made a strong case for a credible bottom-up economic plan to boost agricultural productivity, improve manufacturing competitiveness, and support startups in the services sector.

A third priority is to ensure that growth is inclusive, just, and sustainable. The “Economy of Tomorrow” project, conducted by the Pakistan-based Sustainable Development Policy Institute – where I work – and the Friedrich-Ebert-Stiftung, has highlighted several key requirements in this regard.

Fiscal policy should be progressive, promoting equitable growth and economic participation by all segments of society. Furthermore, trade policy should be resistant to elite capture and take consumer welfare into account. And energy, water, and urban-management policies should respect natural resources and the environment. The latter is especially important because Pakistan already suffers from the effects of climate change in the form of recurrent, environment-degrading droughts.

Fourth, the state must create room for entrepreneurship. With over 60% of Pakistan’s population under the age of 25, the public sector clearly cannot absorb all new entrants to the labor force. The solution may instead lie with startups and small and medium-size enterprises. An earlier report by the British Council Pakistan, for example, indicated a surge in startups in diverse sectors.

The number of young Pakistani entrepreneurs is rising significantly, and not only because of the country’s youthful population. Rural-to-urban migration, new public-sector universities, incubators, and accelerator initiatives have also helped. Government policy should now aim to reduce the failure rate of startups and help them to grow. It must also ensure that startups are an option for young people – including women – from all regions and economic backgrounds, including by removing barriers to market information and credit.

Finally, the government should help prepare Pakistan to embrace the emerging technologies of the Fourth Industrial Revolution. Future developments in artificial intelligence, robotics, 3D printing, cloud computing, blockchain, biotechnology, and augmented reality will have a huge economic impact. Adapting to these technologies will require new government initiatives and updated curricula in Pakistani universities.
Riaz Haq said…
PML-N govt lifted 6.2% population out of poverty
By Shahbaz Rana

https://tribune.com.pk/story/2011528/1-pml-n-govt-lifted-6-2-population-poverty/

Pakistan has lifted 6.2% of its population out of acute poverty during five-year term of Pakistan Muslim League-Nawaz (PML-N), as the number of people living in multidimensional poverty stood at 38.3% in 2018, states a new report of the United Nations Development Programme (UNDP).

The incidence of multidimensional poverty in Pakistan is 38.3% but the intensity is considerably higher at 51.7%, according to the new Multidimensional Poverty Index (MPI) that is based on data of up to fiscal year 2017-18. The report was released on Wednesday.

Jointly developed by the UNDP and the Oxford Poverty and Human Development Initiative (OPHI) at the University of Oxford, the 2019 global MPI offers data for 101 countries, covering 76 per cent of the global population.

The report shows that over one-third of children in Pakistan under the age of 5 years were malnourished and suffering from intra-household inequality. The UNDP has defined the intra household inequality as deprivation in nutrition where one child in the household is malnourished and other is not.

Overall, in South Asia 22.7% of children under age 5 experience intra household inequalities in deprivation in nutrition, says the report.

The 38.3% of the people living in multidimensional poverty by end of 2017-18 suggests the previous government managed to reduce acute poverty in the country. The UNDP report shows that in 2012-13, 44.5% of the population lived in acute multidimensional poverty.

The intensity of poverty also reduced from 52.3% in 2013 to 51.7% in 2018.

The PML-N government had achieved average 4.8% economic growth rate during its five years term, although it missed the annual targets. Rather than income and wealth alone, the MPI uses broader measures to determine poverty based on access to healthcare, education and the overall standard of living, thus giving a more detailed understanding of poverty.

The report notes that Kenya and Pakistan have a similar incidence of multidimensional poverty but inequality in education in Pakistan is twice that of Kenya. The 41.3% of the population was deprived of education – a startling figure that underscores the need to heavily invest in humans.

In order to ensure that Pakistan does not cut the spending on health and education, the International Monetary Fund (IMF) has introduced an indicative target in the programme.

The UNDP notes that Pakistan reduced deprivations in six out of ten indicators. About 27.6% of the total population still lacked access to health related facilities. Nearly one-third of the population did not have access to better standards of living.

Out of the total population, about 21.5% was suffering from severe multidimensional poverty. In addition to 38.3% of the population that lived in multidimensional poverty, another nearly 13% were vulnerable to the poverty.

Nearly one out of every three citizens did not have access to cooking fuel – a ratio that was 38.2% in 2013. About one-fifth did not have access to sanitation, which was less than 29.4% ratio in 2013. Nearly 8% population lacked access to clean drinking water –better than 9.1% in 2013.

The indicators on school attendance and child mortality were also improved but these were still not very impressive. 27% of the population lacked access to nutrition, which was 32.4% five years ago. The child mortality rate went down from 8.7% to 5.9%.


Riaz Haq said…
How ‘Good Governance’ in 38 Countries Affects Living Standards

https://www.bloomberg.com/graphics/2019-quality-of-government-and-life/

If you believe that vibrant democracies guarantee good government or that robust economic output ensures a better quality of life for a nation’s citizens, think again.

All over the world, stable economies are facing restive moments. U.S. President Donald Trump was impeached in the House on Wednesday over charges of obstruction and abuse of power. U.K. Prime Minister Boris Johnson could be on the verge of delivering Brexit—three years after voters first chose to leave the European Union—after his Conservative Party won a resounding majority in last week’s general election. In local elections last month, Hong Kong overwhelmingly elected pro-Democracy council members as China seeks to clamp down on protests that have gripped the city for most of the year.

While there is a general correlation between a strong democracy and economic expansion and a better quality of life, research by the Los Angeles-based Berggruen Institute into 38 countries that make up 95% of global gross domestic product shows that’s not always the case. In several of the largest economies in the world—including mature democracies and developing countries—actual government performance is often the decisive factor.

China, which scores low on democracy, has undoubtedly been an economic success story, lifting hundreds of millions of people out of poverty and helping spur the global economy. But it faces a massive debt problem, and is perhaps approaching a ceiling and may need to allow more public participation in running government if it wants to guarantee a better quality of life for its people in the future.

In contrast, the U.S. hasn’t excelled at translating its high gross domestic product growth rate into increases in the quality of life, which has, in fact, decreased slightly over the past 14 years, the Institute said. This is particularly notable in health and education, where the problem isn’t quality, but affordability.

“Growing economic inequality and wealth disparity could be key factors, particularly after the 2007–2008 financial crisis,” according to the report. “Although the economy rebounded after the crisis, the gains were disproportionately concentrated in the top tier of the U.S. population, with 95% of growth going to the top 1% of the households.”

Even in established democracies, actual government performance can trump other factors in determining quality of life. Italy, for example, has a lively democracy, but the responsiveness of successive governments has been poor, and as a result living standards are stagnant at best.

“Italy ranks surprisingly high with respect to quality of democracy scores,” according to the report. “Yet the availability of feedback mechanisms and other democratic processes seems to have no additional impact on the quality of government.”

Social movements that target reform in local and national bureaucracies could help the country escape stagnation, the report found.

A failure of good governance also undermines progress in two middle-income BRICs countries—South Africa and Brazil.

South Africa suffers from world-beating unemployment, high crime and a poor education system that remains skewed along racial lines, some of which can be attributed to the legacy of apartheid. And while it scores relatively well on democracy, its poor performance in addressing inequality—which is higher than at the end of white-minority rule—and corruption may be more a result of the lack of political will than the state’s capacity, according to the report.

Riaz Haq said…
New index says #India is more #corrupt than #Pakistan . Sponsored by Los Angeles-based research organisation Berggruen Institute, the governance index ranked performance on 3 key indices — Quality of #Democracy, Quality of #Government and Quality of #Life.

https://theprint.in/india/overachiever-in-democracy-india-trails-pakistan-in-corruption-on-governance-index/368568/

On the “existence and perception” of corruption in a country, China was considered the most corrupt with a score of 39 points and India came next at 28 points. Pakistan was considered the least corrupt with just 13 points.


India ranked poorly on business regulation, public health and civil justice, according to the recently released Berggruen Governance Index 2019.

The report looked at data over 14 years (2004-2018) from 38 countries and covered 95 per cent of the global GDP and 75 per cent of the global population.

India versus China versus Pakistan
Based on the sub-index Judicial Impartiality, which refers to “a citizen’s treatment in the course of judicial procedures”, India scored the most with 28 data points, Pakistan scored 14 and China 5.

With regard to Quality of Education, China took the lead at 80 points while India and Pakistan scored 30.

On the “existence and perception” of corruption in a country, China was considered the most corrupt with a score of 39 points and India came next at 28 points. Pakistan was considered the least corrupt with just 13 points.

On ‘politicised bureaucracy’, which is the influence of political connections and ideology in the “hiring and firing practices” of bureaucracy, India ranked highest of the three countries with 59 points, China came next with 23 and then Pakistan at 13.

With regards to Shadow Economy — the ability of the government to prevent economic activity from escaping its reach — China scored the highest (91 points), followed by India (57 points) and Pakistan (14 points).

Of the 38 countries, Sweden was the “overachiever” with the highest score in all three indices. UK achieved “more than expected in light of its GDP” overall, while the US performed “just above expectations” on Quality of Democracy, and just below in the remaining two indices.
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If you believe that vibrant democracies guarantee good government or that robust economic output ensures a better quality of life for a nation’s citizens, think again.


China, which scores low on democracy, has undoubtedly been an economic success story, lifting hundreds of millions of people out of poverty and helping spur the global economy. But it faces a massive debt problem, and is perhaps approaching a ceiling and may need to allow more public participation in running government if it wants to guarantee a better quality of life for its people in the future.


In contrast, the U.S. hasn’t excelled at translating its high gross domestic product growth rate into increases in the quality of life, which has, in fact, decreased slightly over the past 14 years, the Institute said. This is particularly notable in health and education, where the problem isn’t quality, but affordability.

“Growing economic inequality and wealth disparity could be key factors, particularly after the 2007–2008 financial crisis,” according to the report. “Although the economy rebounded after the crisis, the gains were disproportionately concentrated in the top tier of the U.S. population, with 95% of growth going to the top 1% of the households.”

Even in established democracies, actual government performance can trump other factors in determining quality of life. Italy, for example, has a lively democracy, but the responsiveness of successive governments has been poor, and as a result living standards are stagnant at best.

“Italy ranks surprisingly high with respect to quality of democracy scores,” according to the report. “Yet the availability of feedback mechanisms and other democratic processes seems to have no additional impact on the quality of government.”

https://www.bloomberg.com/graphics/2019-quality-of-government-and-life/
Riaz Haq said…
Is it an institution, digital or social inclusion that matters for inclusive growth? A panel data analysis

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7320837/

This study empirically examines the impact of institutional quality, social inclusion and digital inclusion on inclusive growth across different economies characterized by different income groups. Particularly, the study examines the impact of institutions on inclusive growth by using the panel data for 83 countries over the period 2010–2017. For empirical specification, we used two-steps system-GMM estimation technique to tackle endogeneity and min–max normalized indexing technique to construct the indices for inclusive growth, social inclusion, digital inclusion and institutional quality. The results of this study show that there is a direct link between institutional quality and inclusive growth for a higher-income group of countries but not in the rest of the income groups. Contribution of social and digital inclusivity is significant in all three income groups, except for social inclusion in middle-income countries. From the policy point of view, these findings suggest that establishing and strengthening the institutional structure in low- and middle-income countries can contribute towards better and higher inclusive growth.

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Interestingly, China (with score 58.52) is ranked higher in terms of inclusive growth than Japan (score: 56.10). Sri Lanka is having score 48.13 has a higher literacy rate than India, which is growing more inclusively than it, as its IGI score value is 50.24. It may be due to the dominance of some variables such as employment to population ratio, income inequalities or per capita income growth in the sample for one country and which may not be high for another country. It is interesting to note that the IGI score of Pakistan (53.52), which has lower economic growth rates than Sri Lanka and India but performed better in terms of inclusive growth than these nations. The results of Pakistan are consistent with Saima and Javed (2011). The performance of Uzbekistan and Nigeria is the worst in terms of inclusive growth. The gap between middle income and low-income groups is small (5 to 6 average points) that implies middle-income countries might be growing rapidly as compared to low-income nations, but in terms of inclusive growth does not significantly differ from low-income countries.

Countries ranking based on institutional quality index indicates that high-income countries are ranked at the top, as shown in Fig. 3. Finland ranked at the top with scores 94.62 which shows the best institutional structure in the world, followed by Norway (93.74), Sweden (93.12). The largest economy in the world (USA) ranked in the 13th position with a score value of 84.24. According to this ranking, Zimbabwe has the poorest institutional structure with a score of 27.77.

Figures 4 and ​and55 portrays an accumulative picture based on the inclusive growth index (IGI) and institutional quality index (IQI).2 These figures indicate the imperative economic rationale of why high-income countries have a higher level of inclusive growth. This implies that as income level increases, institutional quality improves, which helps in achieving inclusive growth, as predicted by North (1994) World Bank (2002) and North and Davis (1970).
Riaz Haq said…
For a long time we have known that improved transport accessibility leads to more opportunities and better lives.

ANDREW DABALENSHOMIK MEHNDIRATTA|JANUARY 24, 2022

https://blogs.worldbank.org/transport/knowledge-action-new-way-maximize-impact-rural-roads

Accessibility describes how easy (or difficult) it is for people to reach services and opportunities. When you look at the data, significant accessibility gaps persist around the world. Globally 51% of individuals living in low-income countries reside within an hour of a city compared to 91% of individuals in high-income countries. This limited access to urban centers hinders rural populations from accessing services and opportunities, including healthcare, education, jobs, and markets. Gender plays an important role as well: as these findings from Pakistan illustrate, women typically must cover greater distances to reach basic services. Even for people living in cities, accessibility may vary depending on the availability of public transport, the impact of traffic congestion.

Lack of access is systematically linked to inferior development outcomes, even more so if motorized transport is not available. The inability to travel to healthcare facilities, for instance, has been associated with increased mortality and morbidity from treatable conditions. Conversely, improved access is often synonymous with improved development outcomes. For example, women with access to roads in Pakistan are twice more likely (14% vs 28%) to go to pre-natal consultations. In rural Morocco, girls’ enrollment in primary schools increased from 17% to 54% when their access to roads improved.

Looking particularly at rural roads investments, the construction of a new road can lead to a chain of positive impacts. When a rural community gets connected to the road network, people who could not reach healthcare, schools, or other essential services before are suddenly able to do so. Workers can access more and better jobs. Farmers can sell their products in more distant markets. But these outcomes can only materialize if rural road projects are carefully planned and prioritized. Also, while investments in road networks are often a critical first step toward enhancing accessibility, they should be integrated into a broader investment package targeting social and technological development overall.

However, transforming this knowledge into action had been hard to operationalize. Lack of data regarding the transport network, opportunities, limited computing power to calculate travel times in large areas and lack of consistent framework had made it hard for us to take this academic research into an operational reality. We needed to understand exactly which transport projects will have the highest impact on accessibility? How would this accessibility transform into household welfare? And how do we create tools to inform planning and investment decisions?

To address these questions, the World Bank’s Transport and Poverty and Equity teams jointly developed a new framework that relies on high-resolution mapping and other sophisticated analytical tools to provide a more granular view of how rural road infrastructure can benefit communities.

We are now able to deploy all that knowledge into operational action, by developing an analytical framework that highlights spatial disparities in access to services and opportunities, calculates the expected gains in accessibility from investments into road infrastructure and thereby informs the placement of transport investments throughout the region.

Riaz Haq said…
20 new projects in Gwadar on the way of completion during 2023: Report | Pakistan Today


https://www.pakistantoday.com.pk/2023/02/09/20-new-projects-in-gwadar-on-the-way-of-completion-during-2023-report/

These projects entail desalination potable water plant, Gwadar Free Zone North (Phase 11), Gwadar Safe City Project, New Gwadar International Airport, three electricity projects, Gwadar Smart Port City Master Plan, Gwadar Tourism Project, New management model of Pak-China Technical and Vocational Institute (PCT & VI), State of Art Shipyard Project, Oil Refinery project, Green Gwadar Project, Pak-China Friendship Hospital, fisher community projects, Gwadar Port dredging project, Export-oriented projects, Fishing industry, Warehouse industry, and Gwadar Huafa Exhibition and Trading Center.

According to the report, over the last 10 years since CPEC set its foot in 2013, Gwadar outlook is changing gradually and constructively, getting over daunting challenges including poverty, civic issues, water, electricity, employment, infrastructure, agriculture and on top of them blue economy.

In the past Gwadar was in shamble and disarray. Later in the course of 10 years, Gwadar has been making headway toward progress in a sustainable manner.

Many development projects have been completed so far including Gwadar Port, Gwadar Free Zone South (Phase I), Eastbay Expressway, Pak-China Technical and Vocational Institute (PCT & VI), China-Pakistan Gwadar Faqeer Middle School, Fiber Optic, E-Custom system (WeBOC), Plant Tissue Culture Lab & Green House, livestock, women-led garment factory, Gwadar University and GDA-Indus Hospital.

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The city’s strategic location at the mouth of the Persian Gulf, coupled with its deep-sea port and modern infrastructure, makes it a hub for trade, transportation, and investment.

As a result, Gwadar is expected to attract a significant amount of foreign investment and economic activity in the coming years, emerging as a major contributor to Pakistan’s economic growth.

One of the most significant projects is the 1.2 Million Gallon Per Day (MGD) de-salination plant, expected to be fully operational by April 2023. This plant will provide a reliable source of clean drinking water to the residents of Gwadar.

In 2023, more than 4 lakhs of people of Gwadar are going to get rid of painful power woes as three electricity projects will power up Gwadar. The first project is about 100 MW Irani electricity from Gabd-Remdan (Pak-Iran border) to Jiwani Grid Station to Gwadar that will come on 1st March.

The second project is another 100 MW from Iran-Pangjur-Turban-Pasni to Gwadar that is going to be completed in current year. The third project is from Quetta, Nag-Besima section to Pangjur and then Turbat-Pasni to Gwadar.

Meanwhile 5 MW power supply will be available to Gwadar Free Zones North (Phase II). If all goes well, in the second step 12 MW power supply will be ensured for Gwadar Free Zone South (phase I) and Gwadar Port in coming months. Finally, the government also approved 300 MW coal-fired power project for Gwadar.

Another major project that is expected to pick more pace in 2023 is the development of the Gwadar Free Zone North (Phase II) spreading over 2,221 acres of land. Currently, export-based Chinese companies are very near building and running their factories in a few months.

The year of 2023 has also brought many fortunes for Gwadar’s fishermen regarding their livelihood to new housing schemes. The Balochistan Government has approved 200 acres of land for new fishermen housing colony for low-income fishmen of Gwadar.

Around Rs300 million has been allocated. Around 3,291 poor fishermen of Gwadar are going to get free of cost boat engines as the government has allocated funds of Rs823 million.
Riaz Haq said…
CPEC Results According to Wang Wenbin of China

https://twitter.com/bilalgilani/status/1677391745112477696?s=20

Bilal I Gilani
@bilalgilani
CPEC projects are creating 192,000 jobs, generating 6,000MW of power, building 510 km (316 miles) of highways, and expanding the national transmission network by 886 km (550 miles),” Foreign Ministry spokesman Wang Wenbin told reporters in Beijing."


Associated Press of Pakistan: On July 5, Prime Minister Shahbaz Sharif while addressing a ceremony to mark a decade of signing of the China-Pakistan Economic Corridor (CPEC), said that CPEC has been playing a key role in transforming Pakistan’s economic landscape. He also said that the mega project helped Pakistan progress in the region and beyond. What is your response?

Wang Wenbin: The China-Pakistan Economic Corridor (CPEC) is a signature project of China-Pakistan cooperation in the new era, and an important project under the Belt and Road Initiative. This year marks the 10th anniversary of the launch of CPEC. After ten years of development, a “1+4” cooperation layout has been formed, with the CPEC at the center and Gwadar Port, transport infrastructure, energy and industrial cooperation being the four key areas. Projects under CPEC are flourishing all across Pakistan, attracting USD 25.4 billion of direct investment, creating 192,000 jobs, producing 6,000 megawatts of electric power, building 510 kilometers of highways and adding 886 kilometers to the core national transmission network. CPEC has made tangible contribution to the national development of Pakistan and connectivity in the region. China and Pakistan have also explored new areas for cooperation under the framework of CPEC, creating new highlights in cooperation on agriculture, science and technology, telecommunication and people’s wellbeing.

China stands ready to work with Pakistan to build on the past achievements and follow the guidance of the important common understandings between the leaders of the two countries on promoting high-quality development of CPEC to boost the development of China and Pakistan and the region and bring more benefits to the people of all countries.

https://www.fmprc.gov.cn/eng/xwfw_665399/s2510_665401/2511_665403/202307/t20230706_11109401.html
Riaz Haq said…
Chinese companies help in improving social sector


https://www.thenews.com.pk/print/1086783-chinese-companies-help-in-improving-social-sector

Islamabad: Chinese companies have enhanced their role in social development of Pakistan, while addressing the country’s economic and development issues. The companies are an integral part of CPEC. They are the torch bearer of this flagship project of BRI. They are not only helping Pakistan overcome its infrastructure problems but also investing in social development, skills, and environmental protection in Pakistan. All Chinese companies are investing in social development, but only a few have been selected for discussion, a report carried by Gwadar Pro. The Chinese companies not only helped to create thousands of jobs but also invested in building the capacity of hundreds of engineers and staff members.

According to available data, Huaneng Shandong Rui Group, which built the Sahiwal coal power invested in 622 employees for building their capacity and sharpen their skills. Further segregation of data shows that 245 engineers were trained following the need for required skills at plants. Port Qasim also contributed to building the capacity of engineers and staff members. Data shows that 2,600 employees benefited from the capacity-building and skill development opportunities offered by the Port Qasim plant. It trained 600 engineers and 2,000 general staff members.

It is a huge number, especially in the engineering category. It will help Pakistan; as Pakistan has a shortage of qualified and trained engineers. These companies also assisted Pakistan during floods and COVID-19. Second, the Chinese Overseas Port Holding Company (COPHC) is another Chines company, which is investing in social development. The major contribution of COPHC is in the sectors of education, waste management, environmental protection, and the provision of food.

Riaz Haq said…
Gwadar’s 1.2 MGD water plant completed: GPA - Pakistan Observer

https://pakobserver.net/gwadars-1-2-mgd-water-plant-completed-gpa/

In order to provide clean water to residents of Gwadar, 1.2 MGD seawater desalination plant has finally been completed as per schedule. Formal inauguration is all set to be executed by Prime Minister Shahbaz Sharif during his likely visit to Gwadar after Eid Holidays. Talking to Gwadar Pro, Gwadar Port Authority (GPA) project director Dawood Baloch said water desalination plant has been done and dusted with a grant of Rs. 2 billion from China in collaboration with Gwadar Port Authority (GPA), National Engineering Services Pakistan and China Harbor Engineering Company (CHEC).

Along with completion of Civil, mechanical and electrical work, Central room of 1.2 MGD desalination water plant is now up and running, he informed. Almost 90 percent manpower and human resource, he said, have been hired from local market of Gwadar and Balochistan. On a query, he said that all related equipment and apparatus have been installed in befitting manner to keep desalination water plant functional with full capacity.

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Gwadar to get clean drinking water

https://tribune.com.pk/story/2406514/gwadar-to-get-clean-drinking-water


QUETTA:
A pipeline 152 kilometers in length, connected to two newly-constructed dams, Shadi Kor and Sod, will provide clean drinking water to Gwadar city.

"The government is taking all possible steps to prevent a water shortage and supply clean water to the people," Public Health Engineering (PHE) Secretary Saleh Baloch said. Uninterrupted water supply to people's homes should be ensured, and no negligence will be tolerated in this regard, he added.

He expressed these views while presiding over the review meeting regarding Gwadar's ‘Ab-noshi’ projects. Gwadar Deputy Commissioner Izzat Nazir Baloch, PHE Executive Engineer Shakeel Ahmed Baloch, Development Institute Gwadar Chief Engineer Haji Syed Muhammad Baloch, Health Engineering SDO Engineer Shezar Amir, and other officers were also present in the meeting.

Chief Engineer Syed Muhammad Baloch said that the water capacity of Shadi Kor Dam is 35 thousand acre-feet, while the water capacity of Sod Dam is 46 thousand acre-feet.

Riaz Haq said…
The mega undertaking (China-Pakistan Economic Corridor or CPEC) has created nearly 200,000 direct local jobs, built more than 1,400 kilometers (870 miles) of highways and roads, and added 8,000 megawatts of electricity to the national grid, ending years of blackouts caused by power outages in the country of 230 million people.


https://www.voanews.com/a/top-china-official-visits-pakistan-marking-cpec-milestone/7204256.html


Chinese Foreign Ministry spokesman Wang Wenbin told reporters in Beijing earlier this month that CPEC projects "are flourishing all across Pakistan," making a "tangible contribution" to the national development of the country and to regional connectivity.

But critics say many projects have suffered delays, including several much-touted industrial zones that were supposed to help Pakistan enhance its exports to earn much-needed foreign exchange.

The country's declining dollar reserves have prevented Islamabad from paying Chinese power producers, leading to strains in many ties.

Pakistan owes more than $1.26 billion (350 billion rupees) to Chinese power plants. The amount keeps growing, and China has been reluctant to defer or restructure the payment and CPEC debts. All the Chinese loans – both government and commercial banks – makeup nearly 30% of Islamabad's external debt.

Some critics blame CPEC investments for contributing to Pakistan's economic troubles. The government fended off the risk of an imminent default by securing a short-term $3 billion International Monetary Fund bailout agreement this month.

Security threats to its citizens and interests in Pakistan have also been a cause of concern for China. Militant attacks have killed several Chinese nationals in recent years, prompting Beijing to press Islamabad to ensure security measures for CPEC projects.

Diplomatic sources told VOA that China has lately directed its diplomats and citizens working on CPEC programs to strictly limit their movements and avoid visiting certain Pakistani cities for security reasons.

"They [Chinese] believe this security issue is becoming an impediment in taking CPEC forward," Senator Mushahid Hussain, the chairman of the defense committee of the upper house of the Pakistani parliament, told VOA in an interview earlier this month.

"Recurring expressions of concern about the safety and security of Chinese citizens and investors in Pakistan by top Chinese leaders indicate that Pakistan's promises of 'foolproof security' for Chinese working in Pakistan have yet to be fulfilled," said Hussain, who represents Prime Minister Shehbaz Sharif's ruling party in the Senate.

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